Women Entrepreneurs in India Face Systemic Barriers Despite Policy Push

ENA Sectors 2024-06-20 16:29:02 New Delhi, Jun 20 (KNN) A World Bank study exposed systemic barriers hindering women-owned businesses in India from participating fully in the economy, despite government efforts to increase procurement from such enterprises. The study found many women entrepreneurs are unaware of supportive policies. It also revealed mismatches between what women-led businesses supply and government demands. Procurement processes create real difficulties for women-owned firms lacking resources and networks, said Shanker Lal, the World Bank's India Lead Procurement Specialist who oversaw the research. While women make up nearly half of India's population, only 20 per cent of enterprises are owned by them according to government data. And more than 80 per cent of women-owned businesses are single-person micro-units operating in the informal sector. This underrepresentation persists despite a 2012 public procurement policy mandating that 25 per cent of purchases by ministries and public sector firms must come from micro and small enterprises (MSEs) - with 3 per cent of that reserved for women-owned businesses. The new World Bank study found that as of 2023-24, only about 1.24 per cent of total procurement by major public sector buyers was going to women-owned firms, far below the 3 per cent target. Other countries like the U.S. (10 per cent) and Colombia (18 per cent) are outperforming India on this metric. Systemic hurdles revealed include societal norms around gender-based violence, mobility restrictions, and disproportionate unpaid domestic labor burdens on women. Lack of access to networks, finance, digital tech and mentorship also impede scaling up. The study recommends setting organisation-level procurement targets for women, gender data collection, capacity building programs, supplier diversity assessments, and support for women's business associations. No country can reach its full potential without unleashing women's entrepreneurial energy, said Lal. Implementation across public and private spheres must accelerate. As India's USD 3 trillion economy grows, ensuring women-owned businesses can equitably access lucrative public contracts is crucial for inclusive prosperity. (KNN Bureau) 38286 https://knnindia.co.in/news/newsdetails/sectors/women-entrepreneurs-in-india-face-systemic-barriers-despite-policy-push 2024-06-20 16:29:02 knnindia.co.in Women Entrepreneurs in India Face Systemic Barriers Despite Policy Push